A retail clothing company began operations in 2014 with assets of $43,800. The f

Question

A retail clothing company began operations in 2014 with assets of $43,800. The following additional data have been taken from the records as of December 31, 2014:

  

What is the amount of current assets to be reported on the balance sheet at the end of 2014?

What is the amount of total liabilities at December 31, 2014?

What is the net profit margin ratio for 2014?

  Accounts Payable $ 5,500   Accounts receivable 5,000   Accrued liabilities 5,300   Accumulated depreciation 7,200   Buildings & equipment 23,500   Contributed capital 3,600   Goodwill & intangible assets 3,400   Land 86   Cash 24,600   Long-term liabilities 4,200   Other current liabilities 6,300   Other non-current assets 3,600   Prepaid expenses 1,130   Net income for 2014
13,500   Retained earnings, January 1 26,016   Sales revenue for 2014 214,000   Inventory 10,300

Explanation / Answer

What is the amount of current assets to be reported on the balance sheet at the end of 2014?

What is the amount of total liabilities at December 31, 2014?

What is the net profit margin ratio for 2014?

net profit margin ratio = Net Income/ Sale

net profit margin ratio = 13500/214000

net profit margin ratio = 0.063

  Accounts receivable
5000   Cash
24600


  Prepaid expenses
1130   Inventory
10300

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